Chapter one

Introduction
1.1Introduction

Bank is such an organization which increases the flow of trading, business & commerce

through safety & secured collection, transfer consigning & loan providing of deposited

money of general people. In modern age, banks play a vital role to utilize the resources of a

country. Banks serve a socially beneficial function by transferring funds from surplus units

(households) to deficit units (businesses). For this reason, bank is called financial

intermediaries.

In Bangladesh, there are 6 State Owned Commercial Banks (SOCBs) and 54 commercial

banks while 9 Foreign Commercial Banks (FCBs) operating in Bangladesh.

We were given approval to write a report on HSBC Bangladesh's "Financial Performance

Analysis for the Years 2016-2020." We attempted to connect our own financial knowledge to

the financial data of HSBC Bank Bangladesh throughout this report. We did our best to

produce a high-quality report on “HSBC Bank Bangladesh Financial Performance Analysis

2016-2020.”

1.2Objectives

The main objective of this report is to determine whether the financial performance of HSBC

Bank Bangladesh as a Foreign Commercial Bank in Bangladesh is improving or not over a

specific time span, i.e., from 2016 to 2020. Other objectives are following,
  To know more about the history and operation of HSBC Bank Bangladesh.

 To analyze the profitability and liquidity of HSBC Bank Bangladesh.

 To identify ratio analysis profitability and liquidity as an effective tool to measure the

performance of bank.

 To understand the past financial condition of the bank.

 To understand the future condition of the bank.

 To gain an understanding of the financial functions of various divisions.

1.3Methodology

Primary Data Sources:

This paper is completely based on secondary data.

Secondary Data Sources:

 Annual report of HSBC Bank Bangladesh.

 Official website of HSBC Bank Bangladesh.

 Various documents of HSBC Bank Bangladesh.

 Different books, journals, articles, papers etc. about HSBC Bank Bangladesh.

Data Analysis Tools:

 Ratio Analysis

 MS Excel

 MS Word

 Graph Chart

1.4Limitations
Nowadays most bank follow some terms which is not accepted by GAAP (Generally

Acceptable Accounting Principle). Also, annual report/ financial statement of a bank is not as

same as the other business enterprise. So, it took more than usual to find out the actual ratio

of different sectors as it is a bank.